Connect with us

Caribbean News

Guyana 2018-2019 Economic Review

Published

on

Economic growth in Guyana increased to 3.4% in 2018. This was mainly due to increased construction activity. Sugar output fell as restructuring of the industry continued, while there was mixed performance in the extractive industries.

Fiscal performance was boosted by a tax amnesty, which increased revenues and helped stabilise the overall deficit.

Public debt as a percentage of gross domestic product (GDP) increased.

Preparation for oil production continues.

Commercial production is due to commence in 2020. This will increase economic growth and provide windfall revenues for the Government of the Co-operative Republic of Guyana (GOGY).

The proposed Natural Resources Fund (NRF) is supposed to help manage the risks associated with this new development, including minimising negative impacts on other non-oil industries.

Reforms to the doing business environment are also necessary to ensure that non-oil industries can become more competitive.

Other risks include political uncertainty.

KEY DEVELOPMENTS IN 2018

Economic growth is estimated to have risen in 2018. Based on Ministry of Finance data, GDP grew by 3.4%, compared with 2.2% in 2017 (see Chart 1). This partly reflected preparation for the first commercial oil production in 2020.

Construction activity rose by 12%. Output from other services was up 15%, linked to increased visitor arrivals.

Of the traditional main industries, sugar output fell by nearly 30%. Restructuring of the Guyana Sugar Company (GuySuCo) was financed by a 5-year external bond issue for $30 billion (3.7% of GDP). This restructuring includes reducing the workforce and divesting assets, in order to reduce subsidies.

The mining industries had mixed fortunes. Gold extraction declined, mainly due to falling declarations by small and medium-scale miners. However, bauxite production was up, and declarations of diamonds, sand and stone increased.

Following consultation, a NRF bill was laid before the National Assembly in November 2018. The purpose of the NRF is to help GOGY manage the significant revenues from oil production, to improve the lives of all Guyanese. A consultation paper set out proposals for how the fund should be administered, including which institutions would be responsible, as well as proposing reporting requirements.

According to the Ministry of Finance, the NRF would follow generally accepted best practices.

Inflation averaged 1.4% in 2018, compared with 1.6% in 2017. The decrease reflected

lower price rises for food and for housing.

Inflationary pressures are expected to increase in the next two years, as the country readies itself for oil production.

Unemployment was much higher for women than for men. Data published by the Guyana Bureau of Statistics (GBS) in 2017 in its Labour Force Survey (LFS) showed that overall unemployment was 12.0%, and that unemployment was higher for women (15.3%) than for men (9.9%).

For young people (aged 15 – 24), female unemployment was 28.0% and male unemployment was 17.3%. The LFS also reported gender disparities in earnings, noting that this was partly due to men working longer hours.

A tax amnesty boosted revenue collection, allowing the fiscal deficit to stabilise. Between January and September 2018, interest and penalties on outstanding tax liabilities were waived. This resulted in extra collections worth about 1.0% of GDP. Total revenue collected was 11.0% more than in 2017.

Total expenditure was 8.7% higher, mainly due to an increase in transfers. Capital expenditure was up 0.7%, although slightly below budget. Performance in public enterprises deteriorated, and their combined

deficit grew. Sugar production at GuySuCo fell, and Guyana Power and Light and Guyana Oil Company both faced higher fuel costs.

The debt stock rose, as did servicing costs.

However, with the economy growing, the ratio of debt to GDP fell to 44.5% in 2018. In addition, Government overdraft was about 6% of GDP (see Chart 3). External debt service increased because of higher principal payments to bilateral and multilateral lenders, rising interest rates, and exchange rate depreciation. The fall in domestic debt reflected a lower stock of treasury bills.

Net credit from the banking system increased.

Meanwhile, further measures were taken to strengthen the financial sector. Net domestic credit grew by 13.6% in the first 10 months of 2018, reflecting higher loans to both Central Government and the private sector.

Commercial loans were up for agriculture, manufacturing and construction but down for mining. The ratio of gross non-˗performing loans to total loans was 12.8% at the end of June, 22 basis points less than in June 2017.

Bank capitalisation continued to be satisfactory, with the Capital Adequacy Ratio improving from 29.2% to 30.6% in the year to June. To help strengthen financial sector resilience, four bills were submitted to

Parliament in April. In addition, the Bank of Guyana (BOG) established a Financial Stability Unit to monitor and identify risks.

The pressure on Correspondent Banking Relationships continued to ease, although charges for some cross-border transactions increased and some of the banks received limited services.

Gross international reserves fell to just above three months of imports (see Chart 4). The

overall deficit tripled to 4.9% of GDP. The current account deficit worsened as export earnings fell and imports rose, especially fuel.

The services deficit also deteriorated. The financial account surplus strengthened, thanks to higher foreign direct investment and loan disbursements. The balance of payments deficit was funded by debt relief and debt forgiveness worth US$76.6 million, as well as the drawdown on international reserves.

OUTLOOK

Guyana is on the verge of a sharp increase in economic growth but immediate prospects partly depend on ending political uncertainty.

In the November 2018 budget speech, the Ministry of Finance (MOF) was targeting 4.6% GDP growth in 2019, with all major sectors contributing. However, increased political uncertainty in early 2019 may dampen this momentum. The National Industrial and Commercial Investments Limited bond issue will push total public and publicly guaranteed debt above 60% of GDP in 2019 but that ratio is projected to decline sharply after 2020.

Note: $ refers to Guyanese Dollars (G$). US$ refers to United States Dollars. US$1 = G$208.5.

Source: Regional Economic Summary 2018 Caribbean Development Bank

Continue Reading
Click to comment
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Businessuite News24

Unlocking Future Potential: The Impact of USAGE Group’s Internship Programs on Tertiary Level Students

Published

on

Bridging the Gap Between Education and Real-World Experience

In today’s competitive job market, the value of practical experience cannot be overstated. Recognizing this need, USAGE Group has pioneered an innovative approach to talent development through its structured Internship Programs, offering university and college-level students unparalleled opportunities to gain hands-on experience while completing their academic requirements.

Empowering the Next Generation:

At USAGE Group, internships are more than just a temporary stint; they are a gateway to professional growth and career advancement. Through carefully crafted programs, students are immersed in real-world projects and mentored by industry experts, equipping them with the skills and knowledge needed to excel in their chosen fields.

A Dual Purpose:

The internship programs at USAGE Group serve a dual purpose, benefiting both students and the company itself. For students, these programs provide invaluable exposure to the inner workings of a dynamic business environment, allowing them to apply theoretical concepts learned in the classroom to practical, real-life situations. Additionally, students accrue hours of hands-on work experience, fulfilling requirements for their academic programs while laying the foundation for future career success.

Opportunities for Growth:

Interns at USAGE Group are not merely bystanders; they are active participants in the company’s mission to deliver top-tier support services to Caribbean SMEs. From assisting with client projects to contributing to strategic initiatives, interns are given meaningful responsibilities that challenge and inspire them to reach new heights. Moreover, they have the opportunity to work alongside seasoned professionals, gaining insights and mentorship that are invaluable to their professional development.

Building a Talent Pipeline:

By investing in internship programs, USAGE Group is not only nurturing the next generation of talent but also building a pipeline of skilled professionals who may eventually join the company on a full-time basis. Through internships, USAGE Group identifies promising individuals who embody the company’s values and ethos, laying the groundwork for future recruitment and retention efforts.

Testimonials from Interns:

“The internship program at USAGE Group has been a transformative experience for me. Not only have I gained practical skills that will serve me well in my career, but I’ve also had the opportunity to work alongside some of the brightest minds in the industry.” – Sarah, Business Administration Student

“I never imagined that an internship could be this impactful. At USAGE Group, I’ve been given real responsibilities and treated as a valued member of the team. It’s been an eye-opening experience that has solidified my career aspirations.” – John, Computer Science Student

Join the Journey:

For university and college-level students seeking to gain practical experience and jumpstart their careers, USAGE Group’s Internship Programs offer a pathway to success. Whether you’re studying finance, marketing, IT, or any other field, there’s a place for you to thrive at USAGE Group.

Contact USAGE Group Today:

To learn more about internship opportunities at USAGE Group and how you can become a part of our dynamic team, contact us today.

Contact Information: Email: usagejamaica@gmail.com

USAGE Business Support Services Group Internship Program Application Form – 2024

As USAGE Group continues to lead the way in revolutionizing business support services in the Caribbean, its commitment to nurturing talent and empowering the next generation remains unwavering. Through internship programs that prioritize hands-on learning and professional growth, USAGE Group is shaping the future of the region’s workforce, one student at a time.

Proud Member and Partner of The Silicon Mountain Project
Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean”
Mandeville Manchester Jamaica

Continue Reading

Businessuite News24

Revolutionizing Business Support Services in the Caribbean: The USAGE Group Story

Published

on

How USAGE Group is Redefining IT-Centered Support for Caribbean SMEs

In the dynamic landscape of Caribbean business, where innovation meets necessity, one company stands out for its commitment to delivering top-tier support services to small and medium enterprises (SMEs). Conceptualized and formed in 2020, USAGE Business Support Services Group has swiftly emerged as a beacon of efficiency and cost-effectiveness, offering a comprehensive suite of Corporate and Operational Services tailored to meet the unique needs of Caribbean businesses.

Unveiling USAGE Group:

At the heart of USAGE Group’s mission is a dedication to providing IT-centered Business Support Services that empower Caribbean SMEs to thrive in today’s competitive market. With a diverse range of offerings, including Accounting and Finance solutions, USAGE Group is not just a service provider but a strategic partner committed to the success of its clients.

Putting Customer Experience First:

What sets USAGE Group apart is its unwavering commitment to customer service and experience. Embedded in the company’s DNA is the mantra “U In Everything We Do,” reflecting a culture that prioritizes the needs and satisfaction of its clients above all else. From the initial consultation to post-implementation support, USAGE Group ensures a seamless and enjoyable experience for every client.

Why Partner With USAGE?

Affordable Quality Monthly Subscription Services: USAGE Group offers cost-effective subscription services designed specifically for SMEs, providing access to high-quality support without breaking the bank.

Access to Multitalented Professionals: Clients of USAGE Group benefit from a team of self-motivated professionals with diverse skills and experiences, capable of tackling even the most complex business challenges.

Expertise and Guidance: Beyond service delivery, USAGE Group offers expertise and guidance to clients, ensuring that every step of the process is smooth and collaborative.

True Collaboration: At USAGE Group, every project is approached as a collaboration, guiding clients from their current state to their desired outcomes with a process that prioritizes mutual growth and success.

Commitment to Quality: From concept to implementation and beyond, USAGE Group remains committed to delivering quality services that positively impact the bottom line of its clients.

Empowering SMEs for Success:

The overarching goal of USAGE Group is clear: to provide SMEs with first-world Accounting, Finance, and Corporate Services that exceed expectations, unlocking their full potential and driving tangible results. By maximizing Business-to-Business (B2B) opportunities and fostering long-term partnerships with SME CEOs, Entrepreneurs, and Business Owners, USAGE Group is poised to catalyze growth and expansion across the English-speaking Caribbean.

In a landscape where agility and innovation are paramount, USAGE Group stands as a testament to the transformative power of strategic partnership and customer-centricity. As Caribbean SMEs navigate the complexities of the modern business world, USAGE Group emerges as a trusted ally, empowering them to thrive and succeed in the digital age.

Contact USAGE Group Today:

For SMEs seeking to revolutionize their business support services and unleash their potential, USAGE Group offers a pathway to success. Contact USAGE Group today for a free consultation and discover how their innovative solutions can transform your business.

Contact Information: Email: usagejamaica@gmail.com

USAGE Business Support Services Group Internship Program Application Form – 2024

Proud Member and Partner of The Silicon Mountain Project
Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean”
Mandeville Manchester Jamaica

Continue Reading

Businessuite Markets

A.S. BRYDEN Acquires Control Of Stansfeld Scott In Barbados

Published

on

A.S. Bryden & Sons Holdings Limited (“A.S. Bryden”) today announced that it has acquired a 55% controlling stake in Stansfeld Scott (Barbados) Limited (“SSB”).

SSB is a leading distributor and retailer of wines, spirits and consumer health products in Barbados. SSB’s products include El Dorado and Plantation rums, Glenfiddich whisky, Stolichnaya vodka, Banrock Station and Lamothe Parrot wines, Twining’s teas, Haliborange vitamins and Endura Malt. In addition to its distribution business, SSB operates six Wine World branded retail stores across Barbados.

P.B. Scott, Chairman of A.S. Bryden

The transaction will allow A.S. Bryden to expand its premium beverage business outside of Trinidad for the first time. Brian Cabral, the outgoing Chairman of SSB, will retain an ownership interest in the Company following the transaction and will remain a director. Stansfeld Scott International, a master distributor of wines and spirits across the Caribbean and Central America which is also owned by Mr. Cabral and his partners,

Jayshree Kessaram and Indra Cabral will not be impacted by this transaction.

In speaking about this development, P.B. Scott, Chairman of A.S. Bryden said, “Brian Cabral, his family and his team have spent decades carefully building Stansfeld Scott into the highest quality wines and spirits distributor and retailer in Barbados. We look forward to joining forces and using A.S. Bryden’s resources to serve Stansfeld Scott’s employees, customers and its principals.”

Continue Reading

Businessuite News24

Trade and Investment Most Sustainable Avenue for Growth…Holness

Published

on

Prime Minister, the Most Hon. Andrew Holness, says Jamaica and the wider region see trade and investment as the most sustainable avenue for the region’s growth and development.

Speaking in the Kingdom of Saudi Arabia where the inaugural Saudi Arabia-CARICOM Summit is being held, Mr. Holness said that investment is a strategic way of increasing wealth without accumulating significant debt.

He noted that the region has put strong measures in place to safeguard investments.

“If we are to focus on investment as the strategic direction for development, our investors can rest assured that the entire region has made commitments for strengthening and deepening our institutional frameworks to protect investments,” he noted.

“We have very strong institutions, certainly, in terms of our legal and justice systems, to support and protect contracts. We have very strong regulations for our financial sector and our financial markets. So, in terms of an investment framework, the region, I think, is significantly attractive in that way,” he added.

Mr. Holness noted that the region welcomes the strengthening and deepening of the relationship with Saudi Arabia.

“As we go forward… investment and trade should be the key strategic direction. The region has great potential for the exploitation of renewable energy… and, therefore, Jamaica, in particular, would be willing to explore investments in this regard,” he said.

The Prime Minister noted that the region is a net supplier of talent to markets in proximity in North America and Europe, noting that “we can manage significant investments in terms of human resources”.

“The Caribbean, though we are Small Island Developing States (SIDS) we have tremendous opportunities for significant investments. Where we are located, we have great logistics opportunities, shipping… and we would be very interested in hearing the investment potentials that exist for that,” Mr. Holness said.

Continue Reading

Businessuite Markets

CinemaONE Reporting Growth And Delivery Of More “Normalized” Revenue And Operating Results For The Half Year Period Ended March 31, 2023.

Published

on

Brian Jahra Chairman of CinemaONE has released the following summary interim financial performance report for the second quarter (Q2) period of FY 2023

Overview

As of March 31, 2023, the global box office achieved the highest quarterly result in the pandemic era, rising to US $8.0 Billion in global box office receipts, representing a 27% increase over the same period in 2022. The success of Avatar The Way of Water continued into the new year and propelled Avatar the Way of Water to US $2.3 Billion, which is the 3rd best movie performance of all time. Other noteworthy movie releases in the January – March 2023 period included Creed II and the locally popular John Wick 4.

FY 2023 has commenced with a significant improvement in film volume, which was down approximately-36% in 2022 versus the pre-pandemic period. Greater film volume, coupled with the recent reaffirmation from all major studios in the value of wide theatrical releases on 2,000 or more screens and, most importantly, coupled with movie theatre exclusivity periods, augurs well for the sustained recovery of the cinema exhibition industry.

In this context, Management remains very encouraged about the industry’s accelerating momentum which has also been demonstrated by CinemaONE’s growth and delivery of more “normalized” revenue and operating results for the Half Year period ended March 31, 2023.

Financial Performance

A summary of CinemaONE’s improved interim financial performance for the second quarter (Q2) period of FY 2023 in comparison to the C-19 impacted Q2 period of the Prior Year is outlined below.

Gross Revenue increased by 90% to TT $7.7M (FY 2022: TT$4.0M).
Gross Profit similarly increased by 87% to TT $4.6M (FY 2022: TT $2.5M).
Operating Profit was TT $.6M a significant increase over the Prior Year period (FY 2022: TT $.1M).

CinemaONE also narrowed Net Loss to TT-$.2M (FY 2022: TT-$.3M). EBITDA notably increased by 104% to TT $2.8M (FY 2022: TT$1.4M).

The Company’s second location in Gulf City Mall made a meaningful contribution in all performance indicators.

In January 2023, CinemaONE also strengthened its Financial Position by consummating a successful equity rights issue, enabling the Company to reduce debt and its debt to capitalization ratio to 64.1% (FY 2022: 69.6%) and to strategically position the Company to prudently pursue expansion opportunities such as the planned re-opening of the cinema facilities in Price Plaza Shopping Center, Chaguanas.

Future Outlook

Second-trailer-for-Fast-X-reveals-even-more-cars

CinemaONE maintains a positive outlook for the global cinema exhibition industry based on both the empirical results from the industry’s continued rebound and the Company’s recent financial performance. Moviegoers have been delighted by nostalgic franchises delivered in a larger-than life cinematic setting such as the April release of Super Mario Brothers which is the first movie of 2023 to surpass US $1 Billion in box office receipts.

In addition, movie volume in 2023 is forecasted to finally be on par with 2019 and studios have confirmed release dates for highly anticipated and more diverse movie titles including the following upcoming movie releases in May-August 2023, which is historically the best performing period in the calendar year: Guardians of the Galaxy Vol. 3, Fast X, The Little Mermaid, Spiderman: Across the Spider-verse, The Flash, Indiana Jones and the Dial of Destiny, Barbie, Mission Impossible: Dead Reckoning Part One, Blue Beetle, Gran Turismo, and Teenage Mutant Ninga Turtles.

 

I wish to thank our shareholders, customers, and employees for the continued confidence in the global entertainment industry.

See You at the Movies!

For more CLICK HERE

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x